As part of the agreement, RealNetworks' RealServer 7.0 will be physically bundled with Red Hat's (RHAT) open source operating system software. Service and
support for this enterprise solution will be collaboratively provided by both
companies.

The two companies will also jointly market the combined solution
through their respective sales forces and marketing programs. RealNetworks (RNWK)
will join the Red Hat Linux Enterprise Edition Program, a collaborative
effort between Red Hat and industry leading application providers designed to
deliver optimized solutions, incorporating support and simplified
configuration of well-known enterprise and Internet applications, to
enterprise customers.

RealNetworks also announced RealPlayer 7 for Linux which will be made
available within 30 days from its Web site and will be
physically bundled with Red Hat's open source operating system software.

RealNetworks will join the Red Hat Linux Enterprise Edition Program, a
collaborative effort between Red Hat and industry leading application
providers designed to deliver optimized solutions to customers which
incorporate support and simplified configurations of well-known enterprise
and Internet applications.

"We are thrilled to see RealNetworks, the acknowledged leader in digital
media on the Internet, take a leadership role in growing demand for
Linux-based solutions," said Matthew Szulik, president and chief executive officer of Red Hat,
Inc.

"This agreement offers broadcasters, hosting providers and corporations
the integration and tuning capabilities that simply are not available with
closed operating systems. These solutions will also greatly ease
installation, configuration, operation, and support as well as provide our
joint customers with powerful performance and trusted reliability."

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